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Saudi Arabia is threatening to send oil prices plummeting down

Saudi Arabia has issued an ultimatum to OPEC+ members, the implementation of which could crush oil prices.

Before a meeting of the organization representatives in Vienna, Saudi Arabia expressed dissatisfaction with the process of reducing oil production is being carried out.

At a preliminary meeting of OPEC+ countries technical monitoring committee, the Saudi representative said that his government was tired of the fact that the budgets of other OPEC+ countries were benefiting from the fact that Saudi Arabia output less than the maximum limit set for it. He said that Saudi Arabia is considering the possibility of extracting oil under the agreement, without having to additionally reduce oil production because of the unfair fulfillment of the obligations by other members.

Earlier it became known that the Saudi authorities are trying to persuade OPEC and OPEC+ countries to decide on a more significant reduction in oil output at the upcoming meeting in Vienna.

In Riyadh, they are in favor of reducing oil production by at least 400 thousand barrels per day, in addition to the previously agreed upon production decline of 1.2 million bpd. Due to a more serious decline in production under OPEC+, Saudi Arabia expects to “surprise the market” and achieve an increase in oil prices during the IPO Saudi Aramco in early December.

According to Reuters sources, Saudi Arabia also advocates a more thorough implementation of the decision to limit oil production due to non-compliance with current quotas. Among countries whose oil production volumes far exceed the agreed quotas, in particular, Iraq and Nigeria are noted. Some negotiators are opposed to a further decline, noting that rising oil prices could help boost shale oil production in the United States.